Technical efficiency of organic rice farms in Central Luzon and Southern Tagalog Regions, Philippines
2016
Valientes, R.M. | Pabuayon, I.M. | Lantican, F.A.
This study analyzes the technical efficiency of organic rice producers in Central Luzon and Southern Tagalog regions, Philippines. Organic rice farms are classified as high (HPF) and low (LPF) performers using a hurdle yield of 3.74 mt/ha (mean yield of the Magsasaka at Siyentipiko Para sa Pag-Unlad ng Bayan - MASIPAG - organic production). A stochastic frontier production function, using the maximum likelihood estimation (MLE) method was employed to estimate the technical efficiency. The MLE results reveal that organic farm inputs comprising of seeds, fertilizers, and labor are the major determinants of organic rice production. The overall technical efficiency ranges from 63% to 68% indicating the potential to increase organic rice production by way of efficiency improvement. The estimates further reveal that HPFs show technical efficiency advantage over their LPF counterparts by as musch as 40 percentage points. The adoption of HPF farm practices by the LPF becomes imperative since the former's practice results to greater technical change in organic rice farming.
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